Welfare Effect of Gig Economy on Urban Households in Nigeria

In the age of digital innovation, the gig economy has emerged as a game-changer, reshaping the labour markets and offering unprecedented flexibility and new opportunities. As the gig economy grows, it is essential to grasp its effects on household welfare, given its influence on income, consumption, and overall well-being. This study examined the welfare effect of gig economy on urban households in Nigeria. with a descriptive survey design, questionnaires were distributed online to 384 respondents across various states in Nigeria. Data analysis was conducted via Structural Equation Modelling (SEM). The study findings revealed that the gig economy positively affects both income and household welfare. Higher income is correlated with increased consumption and improved household welfare, and household consumption is similarly linked to better welfare. Consequently, the study concludes that the gig economy enhances household welfare through its influence on income and consumption. On the basis these findings, the study recommends that the Nigerian government and policymakers establish a regulatory framework that supports the gig economy while protecting workers' rights; the government should invest in infrastructure and digital literacy programs to make gig work more accessible and efficient; and policymakers should implement social protection measures such as health insurance, pensions, and fair wages to protect gig workers from income instability and exploitation.